Life Cycle Cost Analysis (LCCA) is primarily used to determine

• A. the total cost of purchasing, operating, and maintaining equipment
• B. the total environmental impact of a product throughout its life
• C. only the initial purchase price
• D. annual energy savings

Answer: (A)

Life Cycle Cost Analysis focuses on the total cost of owning an asset over its entire life. It includes purchase, operating, and maintenance costs, plus potential replacement and disposal costs, all evaluated over a defined period (usually with future costs discounted to present value). This broad view lets you compare different equipment or retrofit options on economic grounds, not just the upfront price. The environmental impact is typically assessed with a different method (life cycle assessment), initial purchase price alone ignores ongoing costs, and annual energy savings are part of the picture but don’t by themselves determine the full lifecycle cost.